Tags: Experts | Country | Recession

MFR's Shapiro: 100% Chance Country Will Like Feel It's in Recession

Thursday, 08 Sep 2011 10:36 AM

Whether the country dips back into a recession remains to be seen, but there's a 100 percent chance it will at least feel that way for most Americans, says Joshua Shapiro, chief economist at MFR Securities in New York.

Economies usually follow self-fulfilling prophecies, meaning if people expect ups and downs, they normally follow suit.

Today many say the economy is heading back to recession or at best, doomed to slow growth.

Either way, potholes mark the road ahead.

"The chances that we are in something that is going to feel like a recession are close to 100 percent," Shapiro tells the New York Times.

"Whether we reach the technical definition" — normally defined as two consecutive quarters of economic contraction — "I think is probably close to 50-50."

Ninety percent of small-business owners say they're worried about a return to recession, although 79 percent say they're prepared for one, according to a Citibank small-business survey, the Huffington Post reports.

The survey also finds that 49 percent of business owners say they expect to grow when the economy recovers, and 28 percent say they already are expanding.

The figures show that uncertainty remains the only certainty, especially due to government policies.

"The reality is that there is uncertainty in the economic environment, in terms of taxes, benefits and healthcare costs," says Raj Seshadri, head of small-business banking at Citibank, according to the Huffington Post.

"They know it's a longer recovery and there are no magic bullets. However, they feel they are very well prepared and are holding their own."

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Whether the country dips back into a recession remains to be seen, but there's a 100 percent chance it will at least feel that way for most Americans, says Joshua Shapiro, chief economist atMFR Securities in New York. Economies usually follow self-fulfilling prophecies,...
Experts,Country,Recession
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2011-36-08
Thursday, 08 Sep 2011 10:36 AM
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